The costs of moving home
Land and Buildings Transaction Tax (LBTT)
LBTT replaced UK Stamp Duty Land Tax (SDLT) in Scotland on April 2015. LBTT is a progressive tax that’s payable on all property purchases over a certain price threshold.
This means you pay a different rate depending on the value of the home. If the purchase price is above £145,000, LBTT is charged at the appropriate rate based on the amount of the chargeable consideration within the relevant thresholds.
The table below outlines the current thresholds.
|Purchase price of property||Rate of LBTT (%)|
|£0 - £145,000||0%|
|Above £145,000 - £250,000||2%|
|Above £250,000 - £325,000||5%|
|Above £325,000 - £750,000||10%|
Take a look at this example to see how it works:
Property price: £280,000
Threshold 1: £0 - £145,000 – 0% tax is charged, meaning the total paid for this portion of the purchase price = £145,000
Threshold 2: £145,000 - £250,000 – 2% (£2,100) tax for the next £105,000
Threshold 3: £250,000 - £325,000 – 5% (£1,500) tax must be paid on the final £30,000 of the property price.
Total LBTT paid = £3,600
Total = £283,600
Moveable property is not usually included within chargeable consideration. Moveable property includes things like fixtures and fittings e.g. Curtains and furniture.
Please visit www.revenue.scot for more information.
There are many different types of mortgages available from a wide variety of lenders, including banks and building societies.
All financial representatives are required to provide best advice in relation to your loan. They operate within the terms of the Financial Services Act (FSA), whether independent or tied to a particular lender.
If you are unsure of how to seek financial advice, your sales adviser can assist you in engaging an independent financial adviser or mortgage broker.
Finding a mortgage
How much your mortgage will cost you each month is entirely dependant on what mortgage you choose. That’s why it’s important that you find the one that’s right for you.
Building societies and banks offer a wide range of mortgage deals, and will always offer the best advice in relation to your loan.
If you are unsure of how to seek financial advice, one of our sales advisers will assist you in finding an independent financial adviser or mortgage broker.